Unlocking Your Salary Sacrifice Benefits in Australia

Struggling with tax and retirement planning? Salary sacrifice could be your secret weapon—cut your taxable income while boosting your super, all with minimal fuss.

✅ Key Takeaways

• ✅ Salary sacrifice lets you redirect pre-tax income into benefits—commonly super contributions—for immediate tax savings. 

• ✅ Superannuation contributions through salary sacrifice are taxed at just 15%, often lower than your marginal rate—great for higher earners. 

• ✅ Fringe benefits (e.g. novated leases, childcare, school fees) may incur FBT—which employers usually pass on unless employee contributions reduce the cost. 

• ✅ Work-related items like laptops, phones, software, protective clothing are FBT‑exempt and don’t attract tax if used primarily for work. 

• ✅ It’s vital your arrangement is in place before earning the income, is documented, and you relinquish access to the sacrificed amount—otherwise it won’t be treated as effective salary sacrifice. 

• ✅ Adhering to concessional contribution caps (e.g. AUD 46,185.91 for 2025 financial year) is crucial to avoid excess contributions tax. 

• ✅ Combining salary sacrifice with Personal Deductible Contributions (PDCs) can help maximise tax benefit and super balance if your income is variable. 

? Call to Action
For deeper insights and tailored advice on salary sacrifice strategies, read the full article on Baron Accounting: Discover salary sacrifice benefits

? Also explore our homepage for resources on small business and personal tax solutions: Baron Accounting homepage ›